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Double-digit improvement of business results and continuation of transformation

Revenues of Work Service Group in H1 2017 reached PLN 1.34 billion and increased by over 11% YoY. Sales profit increased in the said period by nearly 30% YoY, while operating result improved by 14% YoY. Process of sale of shares in Groups IT Kontrakt and Proservice was completed within the ongoing Group’s transformation in H1, leading to non-cash deduction, which decreased the consolidated net result for H1 2017. Without the one-off disinvestment deductions, the Group’s net profit reached nearly PLN 7 million.

In H1, revenues of Work Service Group increased by 11.5% YoY, exceeding PLN 1.34 billion. In the same period, the Group’s operating profit increased by depreciation amounted (EBITDA) to PLN 45.3 million, accounting for an increase of 13% compared to the corresponding period in 2016. Meanwhile, EBIT rose by over 14% to PLN 36.76 million, accounting for over 43% of the announced outlook for the end of the year.

“It’s been very active 6 months, during which we’ve improved key operational results and once again confirmed that execution of our strategic goals brings about intended outcomes. Our business is growing at a stable two-digit pace, and our development is connected with a good condition of the labour market throughout whole CEE region. Thanks to proper management of cost policy, our revenues are growing faster than liabilities, and we have also managed to limit the level of indebtedness. What’s important, favourable prosperity can be visible in our commercial activities leading to almost 30% rise of our sales profits,”says Maciej Witucki, President of the Board, Work Service S.A.

 

Execution of the announced transformation

Last year, Work Service Group announced a development plan, determining strategic goals by the end of 2017. One of its pillars consisted in the consolidation of structures and increasing efficiency in such a big, geographically and business-wise diversified organisation. As a result, two independent processes of sales transaction of shares in Groups IT Kontrakt and Proservice were carried out in H1 2017. The former one had a positive and the latter one – negative impact on the company’s balance. Following the undertaken activities, the company made a deduction, which burdened net profit with a total amount of PLN 77.6 million.

“Opting for greater transparency of Work Service Group and predictable conditions for running business activities, we decided at the turn of the year to sell two Groups comprising 10 companies in total. As a result, in H1 2017 we left, inter alia, the Russian market, where (as proven by our previous experiences) business activities entail extensive uncertainty and various risks. Simultaneously, results in Russia had been systematically deteriorating after 2014, i.e. since imposing sanctions on this country. Therefore, we’ve decided to focus on developing our business in CEE states, where we have been dynamically growing for the last six months. Currently, 75% of the Group’s revenues come from our businesses in Poland, Czech Republic and Hungary, and we’ve been growing at a double-digit pace on all these markets,” adds Maciej Witucki.

 

Basic financial data of Work Service Capital Group between January 1, 2017 and June 30, 2017 compared to corresponding period one year earlier:

 

Dane skonsolidowane (w tys. zł)

 

2017

 

2016

 

Zmiana r./r.

Revenues

1 341 448

1 203 599

+11,5%

EBTIDA

45 273

40 081

+13%

Sales profit

41 563

31 993

+29,9%

EBIT profit

36 760

32 173

+14,3%

Net profit

-70 668

8 012

-982%

Net profit without write off

6 980

8 012

-12,9%

 

***

Work Service capital group was established in 1999 and is the largest provider of HR services in CEE. It operates in Poland through network of local branches and abroad in 16 countries (Russia, Germany, Czechia, Turkey, Romania, Hungary, Slovakia, United Kingdom, Belgium, France, Switzerland, Slovenia, Croatia, Serbia, Bulgaria, China). It specializes in personal advisory services, HR restructuring, recruitment, temporary staffing and outsourcing. More than 3,000 companies have already chosen Work Service as their business partner. Each day 50,000 persons and 300,000 persons annually find employment with support of Work Service Group. Work Service is listed on Warsaw Stock Exchange and London Stock Exchange.

 

Press officer:

Andrzej Kubisiak
Analyses and Communication Team Director at Work Service S.A.
mobile: +48 512 176 030
e-mail: andrzej.kubisiak@workservice.pl

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Press Officer

Andrzej Kubisiak


Andrzej Kubisiak

tel. +[48] 512 176 030
andrzej.kubisiak@workservice.pl

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